Long Island’s Luxury Apartment Market Defies the National Trend

A new report from CoStar presents a striking reality for the national multifamily market: across many major U.S. metro areas, luxury apartment vacancy rates remain stubbornly high. Yet here on Long Island, the data tells a different story — one of accelerating absorption and vanishing availability, even in the most premium segments of the market.

While national headlines focus on oversupply in cities like Austin, Denver, and Miami, Long Island stands out as an outlier — and not for reasons that should bring us comfort. The island’s rapidly tightening vacancy rates are not a sign of a booming development cycle, but rather a symptom of a deep, structural housing shortage.

“We’re simply not building enough homes to meet demand — period,” says Devin Kulka, CEO of The Kulka Group. “Whether it’s workforce housing, middle-income units, or luxury apartments, the supply across all categories is years behind where it needs to be. And the data is finally catching up to what we’ve all been feeling on the ground.”

Indeed, developers, planners, and policymakers have long known that Long Island’s housing market is constrained. But the CoStar chart provides a clear, visual confirmation of how severe that imbalance has become. Even the highest-end buildings — typically the last to lease in oversaturated markets — are seeing lower vacancy rates, not because demand has exploded, but because there’s simply nowhere else to go.

At The Kulka Group, this reality is playing out across every project in the pipeline. From mixed-use developments to multifamily housing, the pressure to deliver is mounting — not just in terms of quantity, but also in navigating the complex regulatory and community landscape that defines Long Island.

“We’re having important conversations with local municipalities and residents every day,” Kulka adds. “They’re asking thoughtful, serious questions — and they should. Growth is never easy. But what we need right now is smart growth. We can’t afford to stall on progress when the need for housing is so critical.”

The shortage is affecting more than just renters. Young professionals are delaying homeownership, seniors are struggling to downsize, and local employers are finding it harder to attract and retain talent — all consequences of a housing market that hasn’t kept pace with regional needs.

Yet amid the challenges, there is real opportunity. The urgency of the moment is opening the door for creative solutions, public-private partnerships, and community-focused developments that align with Long Island’s values and future vision.

“This isn’t about building for the sake of building,” says Kulka. “It’s about creating places people can live, work, and thrive — and doing it in a way that respects our communities and strengthens our region.”

As the data continues to highlight Long Island’s unique position in the national housing conversation, one thing is clear: the window for meaningful action is open. For developers, local leaders, and residents alike, the time to work together is now.